Tom Reese/Paul Rubillo, Dividend.com
American International Group (AIG) announced that they will need to borrow an additional $37.8 billion in cash from the federal government.
This comes on the heels of of an $85 billion loan AIG received last month from the government, as the insurer faced a liquidity squeeze. The company said it plans to sell off some of its insurance subsidiaries to pay off the initial government loan, but no further details have been given.
The Bottom Line
The American taxpayer needs to keep their wallets open, because the borrowing just keeps on coming. The company just finished spending $200,000 on hotel rooms and $23,000 on spa services at an event, just days after it got the emergency loan from the government. Ahh, the rewards of failure!
We continue to recommend investors avoid the $5 and below stocks.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
